As Global Economic Conditions Continue to Freeze, the Outlook for Panama’s Economic Future Remains Sunny

Panama has one of the highest rates of savings and investment in the world. Massive projects like the widening of the famous Panama Canal continue to drive the local economy at rates that rank it number one in Latin America and among the fastest growing in the world.

The Wall Street Journal recently noted that Panama’s resilience to the deleterious effects of the global economic document position it well. The  nation and government will very likely survive the current crisis ravaging other IDR—“BB” rated peers.

The Fitch Sovereign rating system takes into account many factors. A country’s IDR (Issuer Default Rating) is in effect a judgement on the likelihood that the entity being rated will continue to be able to meet its financial obligations in a timely manner. For example, the city of San Francisco in California was recently downgraded from a “C’ IDR to a “CCC” IDR.

Panama’s current rating of “BB” is just two steps away from the “A’ ratings ladder. this is a much cherished accomplishment shared by just a handful of government and businesses.

When choosing an offshore partner, confidentiality is an important consideration. More importantly, a stable political system, and a strong local economy remain the most important factors. I all three sectors, Panama remains your best choice in the Americas.

Always begin your exploration of Panama’s business potential by developing a working relationship with local counsel. There are many third party sources willing to provide you with unbiased reviews of individuals and firms within Panama’s professional community. Consult with one of these first to insure that your choice of counsel is well informed.

For more information on banking, real estate, trade policy, corporations, tax benefits, local economics, vessel registration, obtaining legal counsel, or any other topic related to doing business in Panama, click here.